It's tough for this market to grow / scale to the levels folks thought it could... The merchant cash advance product is one which the buyer (MCA company) is betting that the seller (small business owner) will be going out of business. GREAT products endure bad markets. Look at Apple through the last Great Recession. Mediocre / poor products, not so much. Merchant cash advances can be useful for a wider array of businesses but the costs are simply too high for many to emerge from an MCA better than they were off prior to the MCA. For this reason, I think the only way the industry will survive / thrive / endure is through de-stabilization. That is to say it will be become more local...

John Q. Smith who is a millionaire cattle rancher in Olathe Kansas will be empowered to advance Joe B. Butcher one of his clients for returns that "beat the street" for John Q. Smith while the rates will also be much more approachable for Joe B. Butcher.

There simply won't be any room for a ton of middle men. Right now hedge funds and the like have to be paid, feeder funds have to be paid, funding company's have to be paid, brokers have to be paid... This is simply not sustainable.

Make no mistake about it, we are heading into a grandaddy of a recession. I know because I've been hired by a major institution to help them prepare... I think it will be a good cleansing experience for the MCA industry and what will emerged is a more localized / decentralized MCA industry where deals will be done like the very first one in this business ever was... Over a hand shake and face to face.